We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
Shared appreciation mortgages
bertandmaud_2
Posts: 7 Forumite
I posted yesterday about my parent's mortgage situation.
They have a shared appreciation mortgage with RBS. The mortgage of £60,000 was raised on a property valued at £350,000 at the time. The amount payable on exit is 51% of the appreciation. Can anyone tell me if that is 51% of the total appreciation (property now £660,000) ie £158,1000, or 60/350 x 51% ie £27102, as obviously the loan was only for 17% of the value of the property. Sorry, I'm totally in the dark about the whole mortgage/finance thing!
They have a shared appreciation mortgage with RBS. The mortgage of £60,000 was raised on a property valued at £350,000 at the time. The amount payable on exit is 51% of the appreciation. Can anyone tell me if that is 51% of the total appreciation (property now £660,000) ie £158,1000, or 60/350 x 51% ie £27102, as obviously the loan was only for 17% of the value of the property. Sorry, I'm totally in the dark about the whole mortgage/finance thing!
0
Comments
-
51% of the appreciation means just that. The property has increased in value by £310,000 therefore the amount payable would be 51% of that. £158,100 would be right.I am an Independent Financial AdviserYou should note that this site doesn't check my status as an Independent Financial Adviser, so you need to take my word for it. This signature is here as I follow MSE's Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0
-
spam reported
OP - please stick to the board and don't PM anyone like this if you want unbiased and without agenda guidance.
Are you challenging this ? Or just wanted confirmation on how a shared appreciation (now defunct) works/is redeemed ?
H0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 353.9K Banking & Borrowing
- 254.3K Reduce Debt & Boost Income
- 455.2K Spending & Discounts
- 246.9K Work, Benefits & Business
- 603.5K Mortgages, Homes & Bills
- 178.3K Life & Family
- 261.1K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.7K Read-Only Boards